Ace the Canadian Securities Course 2025 - Rock the CSC Practice Exam!

Question: 1 / 400

What is the purpose of escrowing shares in the context of securities?

Protecting shares from market volatility

Providing shareholders with voting rights

Ensuring stable value and preventing premature share selling

Escrowing shares in the context of securities serves the purpose of ensuring stable value and preventing premature share selling. This means that the shares are held by a third party, often a bank or a law firm, until specific conditions are met. This is done to ensure that the value of the shares remains stable and to prevent shareholders from selling their shares before certain requirements are fulfilled. Options A, B, and D are incorrect because they do not fully describe the purpose of escrowing shares in the context of securities.

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Facilitating quick sale of shares on the market

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